Bengal Co. provides the following unit sales forecast for the next three months: July August September Sales units 5,800 6,500 6,360

Bengal Co. provides the following unit sales forecast for the next three months: July August September Sales units 5,800 6,500 6,360 The company wants to end each month with ending finished goods inventory equal to 30% of the next month's sales. Finished goods inventory on June 30 is 1,740 units. The budgeted production units for July are:

Answers

Production= 6,010

Explanation:

Giving the following information:

July August

Sales units 5,800 6,500

Finished goods inventory on June 30 is 1,740 units.

To calculate the production for July, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 5,800 + (6,500*0.3) - 1,740

Production= 6,010

This question seems like it should be quite hard although it reall just wants you to subtract.92-8.7=83.3

u = 30

continuing your method

frac{1}{10} = frac{1}{u} + frac{1}{15}

subtract frac{1}{15} from both sides

frac{1}{u} = frac{1}{10} - frac{1}{15} thus

frac{1}{u} = frac{3}{30} - frac{2}{30}

frac{1}{u} = frac{1}{30} ⇒ u = 30

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